Understanding the New Equity for Forbearance Agreement

The COVID-19 pandemic has undoubtedly affected businesses in many ways, not just at the local or domestic level but also globally. Business owners have been trying to navigate the new norm of social distancing and keeping their doors open while taking care of their employees.

As a business owner, you might be struggling to pay your commercial mortgage due to the pandemic, and it’s essential to take the right steps to avoid the consequences of defaulting on your payments. Before calling your bank, it’s wise to call Commercial Mortgage. In this blog post, we’ll take a closer look at the new Equity for Forbearance Agreement and how it can help save your business during these difficult times.

What is Equity for Forbearance Agreement?

The Equity for Forbearance Agreement is a new initiative designed by Commercial Mortgage to help business owners who are struggling to pay their mortgage due to the COVID-19 pandemic. The initiative allows business owners to leverage the equity on their property to obtain forbearance on their mortgage payments.

How Does It Work?

The Equity for Forbearance Agreement works by creating equity by obtaining an appraisal for your commercial property. This appraisal will then be used to determine the equity in your property. Commercial Mortgage can then lend you 50% of the equity.

The funds obtained from the equity can be used to pay the interest on your commercial mortgage, effectively avoiding default on your payments. This agreement is beneficial since it allows business owners to divert other funds towards running their businesses.

Why Should You Consider Calling Commercial Mortgage Before Calling Your Bank?

Calling Commercial Mortgage before calling your bank is a smart move for any business owner. Commercial Mortgage has been in the business for many years and has vast experience dealing with commercial mortgages. They offer several options to help business owners experiencing difficulty paying their commercial mortgages due to the pandemic.

Moreover, Commercial Mortgage’s Equity for Forbearance Agreement offers several benefits over traditional forbearance agreements offered by banks. Banks typically offer forbearance agreements with only a few months of relief, and in some cases, they may require a lump sum payment at the end of the forbearance period. Commercial Mortgage’s Equity for Forbearance Agreement, on the other hand, offers business owners the opportunity to leverage their property’s equity to obtain a longer-term forbearance agreement, avoiding lump-sum payments.

Conclusion:

As a business owner, it’s crucial to keep your commercial mortgage payments up to date to avoid the consequences that come with defaulting. The Equity for Forbearance Agreement offered by Commercial Mortgage provides a flexible and favorable alternative to traditional forbearance agreements. So, before considering options such as calling your bank, get in touch with Commercial Mortgage for help. Let them help you leverage your property’s equity to avoid creeping insolvency. Contact Commercial Mortgage today to learn more about the Equity for Forbearance Agreement and how it can help save your business during these difficult times

Contact Tim today at 561-310-5295 or tim@commercialmortgagellc.com. Let's make some smart moves together. 💪

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